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Need help in understanding our private practice finances

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  • #16

    Thank you nephron. I looked over my last year’s figures. Again, I am being hypothetical here and rounding off:


    For 2018:

    Services: $855,000

    Payments: $355,000

    Adjustments: $545,500

    Number of Cases : 2850

    I realize that the adjustments and payments may have also been carried over from latter months in 2017. But for the sake of discussion and simplicity, if I billed 855K in 2018 and only received 355K, that’s pretty low! Correct? is 50-60% payment for services billed the actual average for docs? I hear that a lot…

    What do the adjustments of 545K really tell me?


    Click to expand...

    maybe, maybe not. You can bill whatever you want, you get paid according to a set contract or schedule. It could say you billed 90 billion and only got 355k and it wouldnt be any more of an issue, better or worse than billing 360 and getting 355.

    The funny numbers in medicine are wasted time and harmful to every participant in medicine, except for journalists making things look terrible.


    • #17
      Would those just be different terms for gross charges, gross collections, and net collections?


      • #18
        Total collections seem pretty low for an ENT. Either you're not very busy (low RVU production), your payer mix sucks, and/or your revenue management (coding, billing, collecting) isn't great

        Compare to other ENTs to figure out the weak link.


        • #19
          I think the numbers were hypothetical, and did the OP say they were ENT?


          • #20
            Gross Production = Collections - (Contractual Adjustments + Bad Debt Write-offs).

            How high is your practice overhead?  I realize you rounded off your numbers, but collections of $355,000 seems low.  If you have 50% practice overhead, then you would bring in only $177,500 after expenses.